Accounting Questions Based On SEC 10-K Report
Need to have the following questions answered based on the SEC 10-k Report for Dell. The link and additional information on Dell (might not need) is included below before the questions.
Reading the balance sheet, note Dell is using the financial strategy of negative working capital. This does not mean they cannot pay their bills (this must on the internet somewhere about negative working capital). The grocery industry often uses negative working capital as a strategy. For Dell is only noteworthy. Why the accumulated deficit? With the 3 years presented on the statement of cash flows and the statement of shareholders’ equity, again, you will many areas to present in your SEC 10-K deliverables. A major acquisition or change in ownership often results in issues such as an accumulated deficit. With Dell’s recent profitability you can see how things continue to change. Mention the payment (or non payment) of cash dividends each year. It is not the per share values the the overall cost of dividends. How do they compare to net income? With the accumulated deficit Dell may not be provided cash dividends at this time.
Category 1 (revenue and net income): 150-200 words with references
1. What were the company’s revenues for the most recent fiscal year? Comment on the trend in total revenue. Is it increasing or decreasing during the past two years?
Category 2 (Irregular Items): 150-200 words with references
1. Identify and describe any irregular items reported on the Income Statement, such as discontinued operation or extraordinary items?
Category 3 (Irregular Items): 150-200 words with references
2. Did your company change any accounting principles that would have required a retrospective adjustment to the financial statements?
Category 4 (Analysis): 150-200 words with references
1. Prepare a horizontal analysis of your company’s Income Statement over the past two years.